FxWirePro: EUR/ AUD up trend gains some momentum but hurdles ahead

•  EUR/ AUD strengthened on Tuesday as    as broader risk sentiment deteriorated  due to geopolitical uncertainty.

• Trump said Tuesday that no talks were underway with Iran and claimed the Strait of Hormuz was open, contradicting Iran’s statement that the key shipping route remained closed.

•Middle East uncertainty continues to cloud economic outlook for Europe, which relies heavily on imports to meet its energy needs.

• Meanwhile, German investor sentiment rose more than expected to 34.2 points in August, supported by strong quarterly results and export orders despite high energy prices and transport disruptions.

•A reading by ZEW ​on views of the current economic situation improved to -61.1 points from -77.6 in ​July, also better than expected.

• Immediate resistance is located at 1.6353(SMA20), any close above will push the pair towards 1.6412(50%fib).

• Immediate support is seen at 1.6285(38.2% fib) and break below could take the pair towards 1.6233(Lower BB).

Recommendation: Good to sell  round 1.6350, with stop loss of 1.6450 and target price of 1.6290